Netbooked.net earning ~$1k/month?

[dzinerfusion]

Hi, I saw this auction, and it caught my eye on its valuation.

http://flippa.com/auctions/96571/Nic...---1322--Month

Do you think it is a good deal? Seems to be a solid affiliate site on a pretty good domain.

What are your thoughts?

[petertdavis]

I wouldn't pay the kind of multiple that he wants for the BIN on any affiliate site. Affiliate sites are very high risk IMO and you have to get them at a low multiple to make up for the high risk factor.

[3stacks]

Hi Peter

Can I find out why you think affiliate sites are high risk? Any particular reasons?

[petertdavis]

Hi Peter

Can I find out why you think affiliate sites are high risk? Any particular reasons?

I only looked briefly at this site, it looks somewhat better than the average affiliate site. He's done a few original articles, for example. The problem is that affiliate sites have had a bad rap since there were affiliate programs, and there's a risk of the site incurring penalties if someone in a position of power takes a cursory look at the site. There are ways to alleviate the risk, for example having a very strong backlink profile will do wonders. increasing the ratio of original content to "aggregated news" would help too. It might be a nice buy for someone, I'm not trying to bash the site, I'm just saying that the risk would make me want to keep the multiple I would pay on the lower end near his minimum.